Many have a rollercoaster ride through life seeking financial success and freedom. Indeed, my financial freedom started with my first wife’s knicker elastic snapping and catapulting me off to a much happier place. Who said the grass is not greener on the other side? I simply became an addition to the ever-increasing statistic of guarantees in life such as divorce, taxes, and death.
Finding a good financial adviser is like finding a good partner, and if they do not make the grade or the trust isn’t there find someone else. This is especially true of a relationship with an IFA that is likely to last for many years. The first rule to apply here is; don’t be too proud or just plain embarrassed to talk to someone about your finances.
Thankfully, I had the skillset to recover from the biggest mistake of my life but I know there are many that struggle to steer themselves to calmer waters, and getting good financial advice from an independent financial adviser is always a good start.
The biggest barrier to someone seeking financial advice is that they think it is too expensive. Okay, let us tackle that one. Let’s say by seeking financial advice we can keep you a basic rate taxpayer in retirement rather than becoming a high-rate taxpayer, saving you £10,000 in tax per annum. Say you lived for 30 years in retirement, and you invested this surplus money at a growth rate of 7% per annum, your estate would be worth over £1million more and the taxman will be a hell of a lot poorer.
Lord Clyde perfectly encapsulated the need to be proactive when managing finances:
“No man in the country is under the smallest obligation, moral or other, so to arrange his legal relations to his business or property as to enable the Inland Revenue to put the largest possible shovel in his stores. The Inland Revenue is not slow, and quite rightly, to take every advantage which is open to it under the Taxing Statutes for the purposes of depleting the taxpayer’s pocket. And the taxpayer is in like manner entitled to be astute to prevent, so far as he honestly can, the depletion of his means by the Inland Revenue.”Lord Clyde
Still not convinced? You may believe that your finances are too simple, or that financial advice is not for someone like you, or you do not have enough to warrant a financial adviser. Do you think our clients planted a money tree when they bought their first house? They knew they needed help to achieve their goals and understood the value of good financial advice, sought it out and are now on their way to a happy retirement with flexibility, security, and choices.
Ignorance as an obstacle to financial success
Any wealthy client had to start somewhere. We can pretty much help any person, but we do need to speak to you before we can give advice. You may be one of those that believes they can look after their own money. With decades of independent financial advice under my belt, I have met people that have done a good job so far at managing their finances … but not an excellent job.
To use a dental analogy, I suppose as a last resort I could pull out my teeth, but why should I be a willing amateur when I have access to a professional dentist? The same can be said of IFAs, you can pin your financial success on whatever knowledge you have and things you’ve read on the internet, or you can talk to a professional. The choice isn’t that difficult when you look at it like that.
There are 101 areas that a good IFA could help you with. For example, one common mistake that people make is to buy shares and do not hold them in ISAs tax-free growth, tax-free income. What if those shares tripled overnight outside of an ISA, how much capital gains tax will you pay on selling? Will you delight in paying tax on your dividends?
Many people said they would be more likely to see a financial adviser once they knew more about the services on offer. You probably need some form of financial advice but how do I know who does and does not want advice.
If you liked this story about building financial success, you’ll find loads more money saving advice features on our finance channel.Last modified: June 13, 2023